Williams %R Early Entry

The strategy is a technical analysis trading strategy that uses the Williams %R indicator to generate buy and sell signals based on specific criteria.

The Williams %R indicator is a momentum oscillator that measures the level of oversold or overbought conditions in a security. When the indicator is above -20, it is considered overbought, and when it is below -80, it is considered oversold.

In this strategy, a buy signal is generated when the Williams %R is falling below a specified limit (a = -80 in the example). This indicates a potential reversal or correction in the stock's price trend, and a buy signal is generated.

Similarly, a sell signal is generated when the Williams %R reaches a specified sell limit (b = -20 in the example). This indicates a potential reversal or correction in the stock's price trend, and a sell signal is generated.

By using specific limits for generating signals, the strategy aims to filter out false signals and only generate signals when the stock is in a specific range of price momentum.

This strategy is based on an absolute values of Williams %R. Typically when Williams %R reaches level of -20 it is considered that a security is overbought and when Williams %R is hitting -80 it is considered that a security is oversold. The current strategy does the following : it generates a buy signal when Williams %R is falling below a set limit a (a = - 80 in the example) and is generating a sell signal when Williams %R reaches a sell limit b (b = - 20 in the example)

Formula

IF W(n) > v
THEN GO SHORT
ELSE
IF W(n)< w
THEN GO LONG
where W is Williams %R;
n - periods
and v > w; e.g. v = 80 and w = 20

Stock Research Links

ALB VLO AXS DLR ARE SLGN QCOM POR PB CHDN ADM

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